New Capital City Bill Oversees Funding Sources, Special Taxes
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1 October 2021 15:12 WIB
TEMPO.CO, Jakarta - The financing scheme for Indonesia's new capital city project will be overseen by the State Capital Bill (RUU IKN) which is scheduled to be ratified by the House of Representatives (DPR) next week.
According to Article 24 of the bill, the funding for its preparation, construction, and the move will be sourced from two main fundings; the State Budget (APBN) and the other source described as legal and in accordance with the provisions of the legislation.
The RUU IKN Authorities will be able to collect taxes. Regional taxes and levies regulated in statutory provisions apply mutatis mutandis as special taxes and levies for IKN. Other sources include State-owned Enterprises (SOEs) assets, government partnership with government-to-business cooperation (KPBU), and pure private funds.
More detailed provisions will be overseen in a government regulation which will be produced after the RUU IKN is passed into law.
The entire budget to fund the move for the 2022 Government work plan (RKP) is set at Rp510.799 billion with the total cost mentioned by the 2022-2024 official medium-term development plan (RPJMN) amounting to Rp466.98 trillion.
Read: New Capital City Project to Spend Rp510 Billion
FRANCISCA CHRISTY ROSANA
